Cash flow OR Appreciation

[Rehan Naseemuddin]

Hi Everyone!

I am very new to real estate investing. A little bit about me. I am a physician in the Jacksonville, FL area. My annual incomes is approximately 520K with total household income of 620K. My only debt is my student loans (270K ouch). I am planning to pay it off in 5 years. I am in no rush as I have a fairly low interest rate. I would to like to get started in real estate for long term growth. 

My question is... should I focus on cash flow properties (I dont need cash flow tbh) or properties that will appreciate more in the future (good schools/neighborhoods etc). Is multifamily a good idea for someone like me? Should I focus on cash flow and put everything back into paying off the property?

What would you do in my situation?

Any thoughts would be appreciated. 

[Darius Ogloza]

Given your circumstances, this one seems to me a no-brainer.  Any cash you generate is going to be taxed at a relatively high rate - especially if the Dem's capture the Senate.  The beauty of appreciating real estate is that it can be held for decades without the occurrence of any realization events.  Here in California, properties purchased in the late 1990's and early 2000's for $400,000 to $500,000 are selling in the $1,500,000 to $2,000,000 range.  No taxed capital gains during the intervening years (as would be true with mutual funds).  Wouldn't it be nice to have a few million put away rather than collecting heavily-taxed monthly pocket change?